Saturday, August 4, 2012

Manchester United to receive $559M from GM

By RONALD BLUM

AP Sports Writer

Associated Press Sports

updated 5:43 p.m. ET Aug. 3, 2012

NEW YORK (AP) - Manchester United will receive $559 million under its seven-year shirt sponsorship agreement with General Motors Co.'s Chevrolet division.

Chevrolet takes over from the insurer Aon starting with the 2014-15 season. Manchester United said it will receive $70 million during the first season of the new deal.

The agreement was signed July 26 and announced Monday. The financial details were disclosed by the soccer team Friday in a filing with the U.S. Securities and Exchange Commission as part of Manchester United's planned initial public offering of stock.

United said the payment will increase 2.1 percent annually during the deal, which runs through the 2020-21 season. In addition, the Red Devils said the agreement calls for them to receive about $18.6 million in fees in each of the 2012-13 and 2013-14 seasons.

General Motors announced the resignation of its chief marketing officer, Joel Ewanick, on Sunday night. Ewanick had been involved in negotiating the deal.

"Mr. Ewanick failed to meet the expectations the company set for its employees," spokesman Greg Martin said Friday, declining additional comment.

? 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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